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John Wang
in
Stocks
May 6 20:33

Oil prices pushed down by the new inventories

The glut is still a threat.
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Oil prices returned to the downward spiral on May 06. The growth of US inventories surpassed the expectations and reminded the investors about the threat of the global glut.
By 04:36 GMT US WTI crude futures dropped 1.1% - 27 cents1 - reaching US$24.29 per barrel, ending its five days of gains. Brent crude futures lost 0.7% - 20 cents - US$30.77 per barrel, cutting its six days of gains.Oil prices were impacted by a report by the American Petroleum Institute, demonstrating that US crude inventories increased by 8.4 million barrels just the last week. That surpasses the earlier forecasts and provokes anxiety on the markets. Earlier the market has been pushed to growth by the news about the easing of the containment measures. It is expected, that the demand will soon surge, as the economies reopen. However, the experts believe that recovery might not be smooth.